CBN warns Nigerians against patronizing MMM

The Central Bank of Nigeria (CBN) has warned Nigerians against the use of MMM a Ponzi scheme company, Punch reports.

Speaking during a mentoring program for students of Government Secondary School, Suleja, the head of the consumer protection department of the CBN Kadija Kassim said the activities of the scheme is not regulated by any institution. Kassim referring to the scheme as ‘wonder bank’ cautioned Nigerians on patronizing activities of the MMM scheme which stands for Mavrodi Mondial Moneybox.

Many Nigerians have been lured into MMM which functions as an online investment scheme. The scheme, through its campaign allows a monthly investment return of 30% for every investor. But Kassim said the scheme is fraudulent and is not supported by any business model. “We have heard about the activities of MMM, but I want to warn you against it because they are wonder banks that are not regulated. Desist from their activities because they are fraudulent,” Kassim said.

Speaking on the theme of the year’s world savings day: “Don’t save what is left after spending, but spend what is left after saving”, Kassim said such approach would assist in the needed awareness for savings.

 “The World Savings Day is a tradition created with the objective of stressing the importance of savings for modern economies and individuals alike. “The primary objective is to increase awareness on financial literacy among various segments of the general public to sensitize them to the importance of saving, earning a livelihood, inculcating a savings habit, and generating employment and entrepreneurship for personal and national development,” she said. Meanwhile, the Redeemed Christian Church of God during one of its programs supported the ‘wonder bank’ scheme. However, reactions have trailed the CBN warning with many Nigerians asking vehement on continuing with the scheme.

 One of the reactions as seen on nairaland by a probable investor asked CBN, why the institution is worried about how people choose to invest their money. Nony43 said: “CBN is it your money? Is it your risk? Shebi na my money and risk, Abeg I was once criticizing MMM but now I am regretting not starting early, people b calling MMM a scam while our money grows like grass by the way I am going today.”

Another person, Ademasta said: “Up MMM! My money, my business, my life! Be reminded, not yours.” But some others who are skeptical about such investment said, they have warned many of their friends and relatives about getting involved with MMM but they would not listen. “I dont know why my mind is telling me that this MMM is a pyramid scheme….scam…I have been cajoled by friends severally to invest but my inner spirit is saying don’t do it…I think i will have to stick to my mind and face my car and poultry business…” Korrection said.